Q: I have owned BCE & T for a very long time. Even with BCE dividend cut I am up a lot (including dividends paid). T is in the doldrums and share price is stagnant. Should I sell these two and buy CGO: low payout ration ROE of 10% but a ton on debt. CGO up a lot this year! Or, sell T and BCE and not buy CGO. I am 77 YO. T & BCE are a small % of total portfolio.
5i Research Answer:
Without getting personal, WE would maintain the current course. CGO has done better (up 7% this year) but it is tiny, at only $610M market cap. We would not consider a 'conservative' stock like BCE and T, which are magnitudes larger.